Wealthsimple Halal Portfolio Review + Recent Updates (2021)

Wealthsimple Halal Review Rating: 4.5/5

If you’re looking for an Islamic-based investment portfolio, Wealthsimple Halal might be your perfect match.

With different investment portfolios to choose from, Wealthsimple offers customized investment vehicles for different investors.

Thus, Halal is one of the products of Wealthsimple that aims at meeting the needs of investors looking for an investment portfolio based on Islamic principles.

But is this portfolio right for you? What are the pros and cons of investing in a Halal portfolio? What much does the portfolio cost?

Here I answer these questions and many other related questions to help you make the best investment decision.

There we go!

Overview of Wealthsimple

Before explaining what Wealthsimple Halal entails, it’s essential to understand better who Wealthsimple is.

Wealthsimple is one of the best robo-advisors in Canada that extends its services to the US and Europe.

After its establishment in 2014, Wealthsimple came to the limelight with its world-class finance and investment solutions.

So from cash, investment and trade, Wealthsimple has customized products for different individuals.

Furthermore, Wealthsimple Trade is a zero-commission trading platform that allows investors to trade ETFs and stocks free.

So in order to optimize its top-notch investment solutions, Wealthsimple launched the Halal investing portfolio in 2017, which is the first of its kind in Canada.

What is Wealthsimple Halal? Who can invest in this portfolio? What is the cost of investing in this portfolio?

Subsequently, you shall learn what Wealthsimple Halal entails and know if it’s the perfect portfolio for you.

Learn more about Wealthsimple here.

What is Wealthsimple Halal?

Wealthsimple Halal is an Islamic-based investment portfolio consisting of 50 stocks in an ETF.

Thus, the portfolio complies with Shariah principles based on the Quran, the holy book of Muslims.

To this end, Wealthsimple ensures that Islamic scholars assess all investments in the portfolio.

As a result, the portfolio does not invest in companies that drive more than 5% profit from:

  • Tobacco
  • Weapons
  • Gambling
  • Alcohol
  • Adult entertainment
  • Pork-related products
  • Insurance
  • High interest on loans

Why? All these are forbidden (Halal) in Islam, making the worship of a Muslim unholy.

That said, the Halal portfolio is authorized and regulated by Rating Intelligence Partners’ team of Islamic researchers.

So the major goal of Halal investing is to help Muslim investors become wealthy without compromising the tenets of Islam.


Wealthsimple updated its Halal portfolio in the second quarter of 2021 with the aim of reducing risk and improving diversification. Consequently, the portfolio now consists of the combination of zero-interest cash, gold and Wealthsimple World Equity Index ETF.

Wealthsimple Halal Investing Strategy

This portfolio invests your money in 50 stocks through Islamic-based exchange-traded funds (ETFs) to achieve its goal.

So through its collaboration with Shariah scholars from the MSCI Shariah advisors’ committee, Wealthsimple establishes an Islamic Index Methodology that determines the combination of funds perfect for the Halal portfolio.

As a result, Wealthsimple eliminates companies that earn more than 5% profit from tobacco, alcohol, gambling, weapons, pornography, loan interest, among other forbidden businesses in Islam.

Wealthsimple Halal Pros and Cons

Let’s now look at the pros and cons of the Halal investment portfolio to help you make a better investment decision:


  • Competitive fees.
  • Free educational resources.
  • Passive investment methodology.
  • Free customized guidance from finance experts.
  • No hidden/additional fees.
  • Automatic portfolio rebalancing.


  • All-equity portfolio with no bonds (equals to aggressive risk).
  • Limited diversification (50 stock holdings, some stockbrokers hold more than 100 stocks).

Are you still doubting whether this portfolio is right for you? Keep reading to learn more about the first Halal investing portfolio in Canada.

Who Can Use Halal Investment Portfolio?

From the above analysis, you can see that Wealthsimple’s Halal portfolio is tailored towards Muslims that want to comply with the tenets of Islam.

However, Halal investing is not only for Muslims. Anyone who wants to apply Islamic or socially responsible principles can invest in this portfolio.

That said, the portfolio is only available to Canadian and US investors as of the time of writing this review.

Also, investors with long-term investment objectives with much or small capital can invest in the Halal portfolio.

Moreover, the portfolio could be perfect for investors with mid-high risk tolerance comfortable with long-term portfolios.

Thus, you need to have a high-interest savings account or build an emergency fund before investing in this portfolio.

Wealthsimple Halal Investment Accounts

One of the major things to look for in any investment portfolio is its range of accounts. This will help you determine if the portfolio consists of your desired investing accounts.

Thus, with Wealthsimple’s Halal investing, you have several accounts to invest in, such as:

  • TFSA
  • RRSP
  • RRIF
  • RESP
  • LIRA
  • Non-registered accounts

That said, if the portfolio doesn’t consist of the account you’re interested in, you can consider another portfolio (which I will discuss shortly).

Wealthsimple Plans

Wealthsimple offers three plans to meet the needs of investors with different budgets and needs. Here we shall discuss each of these plans to help you choose the one that you can afford.

1. Wealthsimple Basic Plan

This plan offers a smart portfolio with zero minimum deposit, helping you invest at your own pace.

That said, the Wealthsimple Basic plan diversifies your portfolio to help you reduce risk and maximize profits.

Thus, the plan invests your funds in a diversified portfolio of Exchange-Traded Funds (ETFs) across different markets and sectors.

Accordingly, Wealthsimple will help you choose a perfect portfolio that suits your investment objective based on your risk tolerance. Here are Wealthsimple risk levels under this plan:

  • Canadian Stocks = 2.1%
  • Gold = 2.7%
  • US Stocks = 4.3%
  • Foreign Stocks = 6.4%
  • Emerging Markets = 8.6%
  • Global Stocks = 8.6%
  • Corporate Debt = 27.5%
  • Gov’t Bonds = 39.8%

Key Features of Wealthsimple Basic Plan

  • 5% management fee
  • Auto-rebalancing
  • Customized portfolio
  • Auto-deposits
  • Expert financial advice
  • Dividend reinvesting

2. Wealthsimple Black Plan

This plan offers premium benefits with a minimum deposit of $100k and a 0.4% management fee.

In addition to all the Basic plan and financial planning session features, the Wealthsimple Black plan also offers tax-efficient perks such as tax-efficient funds and tax-loss harvesting.

Key Features of Wealthsimple Black Plan

  • 4% management fee
  • All Basic plan features
  • Tax-efficient funds
  • Tax-loss harvesting
  • Financial planning session

3. Wealthsimple Generation Plan

The last but not the least plan offered by Wealthsimple is known as Wealthsimple Generation Plan. This plan provides advanced benefits in addition to the benefits of the Wealthsimple Black plan.

With a $500k minimum deposit, Wealthsimple Generation Plan offers personalized investment solutions with in-depth financial planning.

So whether you’re looking for retirement planning or long-term wealth management, this plan gets you covered with expert-based cash flow and net worth analysis, financial forecasts and practical actions.

Key Features of Wealthsimple Generation Plan

  • 4% management fee
  • All Black plan features
  • Customized portfolios
  • Asset allocation
  • In-depth financial planning
  • Customized financial report
  • Dedicated team of advisors
  • 50% off Medcan health plan

Halal Investment Canada Portfolio Risk Levels

Before investing in any portfolio, it’s important to know its risk levels as it compares with your risk tolerance.

That said, Halal investment Canada’s companies are not weighted by market capitalization but risk.

Furthermore, companies are selected based on their ability to survive on low market volatility.

Below are Wealthsimple’s Hala investing risk levels as of the time of this review:

  • Wealthsimple Shariah World Equity Index ETF (WSHR) = 40%
  • Gold = 15%
  • Non-interest bearing cash = 45%

Wealthsimple Weighting & Holdings

Here are the holdings and allocations of Wealthsimple Halal across different sectors:

Industry Weight

  • Financials = 2.70%
  • Energy = 3.80%
  • Utilities = 4.20%
  • Real Estate = 7.30%
  • Communication Services = 7.50%
  • Information Technology = 10.70%
  • Consumer = 11.20%
  • Materials = 12.40%
  • Health Care = 12.60%
  • Industrials = 13.80%
  • Consumer Staples = 13.90%

Geographic Weight

  • Luxembourg = 0.40%
  • China = 0.50%
  • Italy = 0.50%
  • Spain = 0.70%
  • Ireland = 0.70%
  • Singapore = 0.80%
  • Germany = 1.60%
  • South Korea = 1.70%
  • Denmark = 2.00%
  • Finland = 2.40%
  • Netherlands = 3.30%
  • Sweden = 3.40%
  • Hong Kong = 3.40%
  • Australia = 3.80%
  • France = 3.90%
  • Canada = 4.70%
  • Britain = 7.20%
  • Switzerland = 8.30%
  • Japan = 17.20%
  • United States = 33.60%

Top Holdings

  • SGS SA = 0.80%
  • Wolters Kluwer NV = 0.80%
  • Singapore Telecommunications Ltd = 0.80%
  • McDonald’s Holdings Co Japan Ltd = 0.80%
  • Waste Connections Inc = 0.90%
  • Givaudan SA = 0.90%
  • CLP Holdings Ltd = 0.90%
  • Beiersdorf AG = 90%
  • Hong Kong & China Gas Co Ltd = 1.00%
  • Nestle SA = 1.00%

Wealthsimple Halal Portfolio Fees

Wealthsimple’s Halal portfolio fees are the same as the Wealthsimple Socially Responsible Investing (SRI): 0.5% management fee for initial $100,000 deposit and 0.4% for subsequent deposit.

Notably, this is a competitive fee compared to the fees of other firms. This means that you will invest more with fewer fees on this portfolio.

My Wealthsimple Halal Review Rating

Here’s how I arrived at the 4.5/5 star rating of this review:

Diversification *** (3.5)
Risk Levels***

Obviously, this portfolio is great in many aspects, but there’s room for improvement.  Wealthsimple needs to offer more stock beyond the current 50 stocks.

Additionally, there’s a need for more risk levels to accommodate investors with different risk tolerance.

Overall, this review is positive, and I recommend it to anyone looking for an Islamic-based investment portfolio.

Wealthsimple Halal vs. Wealthsimple Socially Responsible Investing: Which to Choose?

Wealthsimple’s Halal and Wealthsimple’s Socially Responsible Investing are common in many ways. They are both value-based portfolios that meet the needs of investors looking for a decent portfolio.

Thus, while Halal portfolio meets the need of investors looking for Islamic-based portfolios, SRI is available for investors looking to invest in companies that adhere to environmental and social principles.

Furthermore, Wealthsimple invests your money under the Halal portfolio in Islamic-based Exchange Traded Funds (ETFs).

On the other hand, Wealthsimple invests your money under SRI across the whole stock market through low-cost ETFs that adhere to environmental and social factors.

Below are Wealthsimple SRI risk levels as of the time of writing this review:

  • Bonds & Gold = 70%
  • WSRD = 15%
  • WSRI = 15%

That said, funds in Wealthsimple SRI have a low carbon footprint, making the portfolio consists of the following ETFs:

  • Gold (GLDM)
  • Developed Market SRI Equities (WSRD)
  • North America SRI Equities (WSRI)
  • Canadian Provincial Bonds (ZMP)
  • Canadian Federal Bonds (ZFL)

Halal vs SRI: Which to choose? The choice is yours. As you can see from the above analysis, the Halal portfolio and SRI portfolio are both value-based but with different compositions and risk levels.

Besides, you do’t have to worry about fees when comparing Wealthsimple’s Halal portfolio vs. SRI portfolio because they have the same fees.

So your selection should reflect your risk tolerance and investment goal.

But if you need further help deciding between Halal portfolio vs. SRI portfolio, don’t hesitate to contact a financial advisor.

How to Open a Wealthsimple Account

Opening a Wealthsimple Halal takes just 5 minutes. All you need to open the account is to follow these simple steps:

  • Visit Wealthsimple sign-up page
  • Enter your email
  • Provide password
  • Enter your country (Canada or UK)
  • Confirm your email
  • Fill a questionnaire about your investment objective and risk tolerance
  • Fund your account
  • Start investing

Also, you can open a Wealthsimple account through the Wealthsimple app accessible on Google Playstore and Apple Store.

However, you can access the Wealthsimple Shariah World Equity Index ETF (WSHR) on other online brokerages.

Verdict on Wealthsimple Halal Investing Canada

That’s it about the Wealthsimple Halal investing in Canada. While this portfolio is ideal for investors looking for an Islamic-based investment portfolio, you shouldn’t rush to it.

As a result, it’s essential to understand the portfolio’s risk levels before investing in it. That means you must have a mid-high risk tolerance to be comfortable with this portfolio.

Since the portfolio has limited stock diversification (50), it’s also essential to know if you’ll be comfortable with that.

Thus, to help you make the best decision, I compared the Halal portfolio with Social Responsible Investing (SRI).

Overall, your choice should reflect your investment objective and risk tolerance.

Finally, if you have any questions or concerns about this Halal investing Canada review, let me know in the comment section.

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